Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2.2 merry motors specializes in the manufacture of

2.2 Merry Motors specializes in the manufacture of small capacity motors. The following information is...

60.1K

Verified Solution

Question

Accounting

2.2 Merry Motors specializes in the manufacture of small capacity motors. The following information is available for the forthcoming year:

R

Selling price per unit

2 400

Variable cost per unit

1 800

Total fixed costs

48 000

The expected sales volume is 200 units.

Required:

2.2.1 Calculate the number of units that must be sold in order to make a profit of R50 000 (answer rounded off to the nearest whole number). (5)

2.2.2 The manager of Merry Motors wants to increase sales by 25 units with the following proposal:

Would you approve of the managers proposal? Motivate your answer by showing the effect it would have on the profit of Merry Motors. (5)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Use variation of parameters to solve the following differential equations y''-5y'-6y=tln(t)

Basic Math
1.2K views

a busy social life has been found to increase happiness in participants who are experincing low...

Biology
1.2K views

Watermelon Citrullus lanatus is a diploid with 22 chromosomes per somatic cell What would be...

Biology
1.2K views

1 What does the FTC regulate 2 Look around this week for an example of...

Biology
1.2K views

Besides differences in coloration or ornamentation in what other ways can males and females of...

Physics
1.2K views

5 A simple pendulum of length 5 m is suspended from the ceiling of a...

Physics
1.2K views

A capacitor of capacitance 1 F withstands the maximum voltage 6 kV while a capacitor...

Accounting
1.2K views

[Para. 4-a-4] Additional interest and penalties were accrued on delinquent property taxes in the amount...

Accounting
1.2K views

Exercise 5-3 The following transactions are for Blossom Company. 1. ...

Accounting
1.2K views

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $300,000...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a...

Accounting
1.2K views

Data table More info Torino Jewelry Company reported the following summarized balance sheet at December...